The ONLY Trading Strategy You Need For Futures | Candle Range Theory (CRT)

All right, ladies and gentlemen, welcome back to another video. And in today's video, we're going to be covering my futures trading strategy that I've been using to really just milk these profits. So, we'll be explaining the entire process from A through Z, and by the end of this video, you guys will have a full understanding and be able to use this on prop firms as well. This strategy is a little bit more advanced, so there will be a little bit more things that go into it compared to my main strategy, so we will cover that as well, and it will help you guys out a lot. So, with all of those things being said, let's get directly into the video and understand how this concept really works. So, as you guys know, options is my main thing. I don't trade futures as like my main trading thing, but I do trade futures on the side, and as you guys can see, I mean, in general, it has been pretty solid, right? Um so, we will really take a look into exactly what you guys got to do because it's not just about the strategy, it's also the risk management and different things like that for prop firms, which you guys also got to be on point with. Now, as you guys know, I trade two main strategies for futures, right? And the first one is the break of structure for valid gap, okay? Which is very simply just going to be waiting from 9:30 a.m. to 9:40 a.m. Eastern Time and just marking out the highest point that price hit and the lowest point that price hit as well. And then from there, you will just wait for price to get a breakout to either one of those directions, wait for price to form a fair value gap after that breakout, and then wait for price to pull back into that fair value gap and show you a decent reaction, and that's where we take our entry. Now, this is only one of the strategies, but whenever I'm trading options, this is the main one that I'll use, but for futures specifically, the second one that I use is called candle range theory. Now, this strategy is a lot more advanced as I said, okay? And I do have videos covering these much more in depth. In this video, I'm more or so going to focus on the risk management that goes into the strategy because that's more so what really matters. So, if you guys do want to go back and really take a look at everything that goes into the strategy, I do have videos covering those all over my channel. Now, what is candle range theory? How does this really work, and why is this such a high win rate? Now, first thing you guys will do is you will go on the one, two, or four-hour time frame. However, I personally use the one-hour because I find that's the one that's the most efficient and works most of the time, all right? So, what you'll do is you'll go and find the most recent one-hour candle. You will mark out the high and the low, and this includes the wicks of that candle. So, your first step is very simple. Just simply mark out the high and the low. That's all you're doing. Second step. So, this is step number one. Second candle, you need to see price come and break the high and immediately reverse back down or immediately reverse back up, depending on the which direction it really broke. So, the actual colored part of the candle, which is called the body of the candle, will need to close above or below the level that it just broke. So, that's step number two. And whenever this happens, price, I want to say 85% of the time, it's a super high win rate, will make a move to the opposite end of the candle has all the resting liquidity. So, in this case, if we took out the high, price will make a move towards the previous candle's low. If we took out the low, price kind of wants to make this U-shaped reversal to this candle's high, all right? This was a U-shaped reversal to the lows. This is a U-shaped reversal to the highs. Candle range theory is very simple. It doesn't have anything crazy. The actual formation itself is very simple, but the way we enter this trade, so this is on the hourly, but the way we enter this trade is you will mark out the middle candle's low or, again, the middle candle's high. You will wait for price on the two-minute time frame to break one of those levels and close above it or below it, depending on which direction you're trading once again. And from there, you will target a two R trade. So, the way that works is you know that price will make a move to this one-hour candle's high because that is where the resting liquidity is. You will then drag your stop loss to see where two R is, and that's what your trade is going to look like on every single trade. So, that is all you're doing. You are going to see one-hour candle high and low. Price will take out one of those levels and reverse right back down, so it will close the body of the candle after the break. And when we break on the two-minute time frame and close the candle below, we will get a beautiful move down to the lows or, in general, the next level of liquidity, I want to say like 80 to 90% of the time. It's very, very common. It's a very high win rate setup. Now, the beauty of this setup is you can trade it at any time you want to because 9:30 a.m. to 1:00 p.m. Eastern Time is what I find to be the best, and so is 7:00 to 10:00 p.m. Eastern Time. However, it works literally any time that you take a look at. We're about to do a backtesting session together, and you guys will see what I'm talking about. But, it works literally any time. Plays out beautifully, but I do find these times will be the highest win rate that you can possibly get. And the next thing I do want to cover is a 1.5 to 2 R on every single trade because the strategy alone is one thing, but you need to make sure that you have a high risk reward, otherwise any strategy you trade is just not going to work. So, you want to make sure that the bare minimum for your risk reward is going to be 1.5, and you should ideally aim for about two R, for example, what we were just talking about. And that is going to make sure that you can milk these prop firms properly. Now, the second strategy I trade as well is a strategy I make a video on literally every single week. You guys already know this, but you're going to have your break of structure of the 9:30 to 9:40 a.m. Eastern Time highs and lows. You will wait for price to break that level, wait for a fair value gap, and when price pulls back into it, that is when we take the trade. And same idea goes over here. 1.5 to 2 R, one to two trades a day, and that's really all you really need for this setup. That's not going to be anything complicated. Just bare minimum, and you will be able to pass those prop firm accounts and get to pay. Those are the two main strategies that I use, ladies and gentlemen. There is nothing crazy on them. Very simple setup, but they crush it. They work absolutely insane, and from years of testing, I find nothing better than really what I'm using right now. So, now let's head over to the charts, and let me explain exactly how these work in the real life markets because it's one thing for me to show you guys, you know, this is the setup, but I want to show you guys on trades that I've actually taken, so you guys can see it much more clearly. So, here's a trade that we took the other day. And if you guys remember once again, what is this setup? You are going to go on the one-hour candle. You will mark out your high, and you will mark out your low, all right? In order to have a valid CRT, you are also going to mark out your middle candle's high. So, let's really break down the setup just a little bit more clearly so everyone can see this um and hopefully see how it's working out. You have your candle's high and your candle low. Whenever price comes and breaks and immediately reverses and closes this one-hour candle above, the body of the candle closes above the low, that is exactly what I was talking about right here. Do you guys see what this is? That is the exact same setup we have on MNQ right here. So, that one-hour candle closes, what I understand the next candle will do is essentially make a move up to this one-hour liquidity where the resting liquidity is, this is where my target will be. This is where I'm looking for price to make a move towards, all right? So, we have everything figured out right over here, okay? We know where price wants to make a move. We know where the drawn liquidity is and everything in between. We know all these different things. Now, what is the last step in order to take an entry on the setup? We will drop down to a two-minute time frame. We will look for price to break this middle candle's high, and it will have to be a strong break, okay? This is where price action becomes a little bit more important. And then we will take the entry and look for a move up to that one-hour high. So, all of this got figured out on the one-hour time frame. Now, let's go ahead and drop down to a two-minute time frame and see how we play this correctly. So, in this situation, the first candle takes it out. It's not a strong break by any means. It breaks it, but it does not close. I don't like that, okay? The second one comes in and breaks, but it's a very weak close again, so I skipped this initial one off skip. What I saw on the second breakout was price came and broke the high once again, right over here on this candle, all right? And then we finally held. One candle, two candles, three candles. So, now it's showing me that there's strength. There is, on top of that, a fair value gap that's holding above that middle candle's high. So, now you have the ability to take an entry on the setup, all right? So, the way I traded this was whenever I saw that candle close, I have my target for wherever my one-hour CRT level is. I will drag it down, and I will see where two R is, and this is what my trade looks like, all right? And whenever I say two R, I'm focused on this risk/reward ratio. I aim for two because it's a very easy way to be profitable, you know, if you lose two trades and you win one, you will be break even or slightly green, all right? And that's exactly how you want to make sure all of your trades will look. Right now, I know that price wants to make a move towards this high, and it's a very, very common level. It will really get followed through on a lot of situations. So, what happens essentially is price breaks the middle candle's high with strength, okay? It holds one, two, three, four candles in a row. I take my entry on the setup. So, it was more so around here that I kind of took that entry. And essentially, we just ride that trade up. Okay? It's holding the fair value gap. It's holding the breakout. And we are looking for a move up to this one-hour high. So, that's essentially what happened on this trade, okay? We got a beautiful move up to that high. It was super clean, super, super high win rate once again, like I said. And price comes and takes it out, and that's all you really need. Now, what I really want to see is, let's head over to the one-hour time frame and see how often this setup works because once again, I can show you guys, oh my goodness, like this setup works, but I want you guys to go back and test this for yourself and see, damn, this thing is just crushing it, right? So, let's take a look out of the last 10 setups on CRT that we had, how many ended up working? So, this one worked right over here, okay? Wonderful. That's one right there. This one ended up working. However, I count this one as a fail because what happened was price came and probably would have taken out your two R, so that is not one that I would consider as a win. This one right here. Mark out one-hour high, one-hour low. Price breaks the low, closes the body of the candle above it. Beautiful move straight to the one-hour high. So, that right there, ladies and gentlemen, is another beautiful setup. You come over here. One-hour high, one-hour low. Price takes out the low, immediately reverses back up, and closes the body of the candle above. Wonderful move once again, straight to your one-hour high, all right? And let's really keep going at this rate. Price comes and takes out the middle candle right here. Beautiful. The body of the candle closes above. That's done. That's another one. Just beautifully down right there. Let's keep taking a look again. Um you have another one once again. One-hour high, one-hour low. Wonderful. Price comes and takes it out, and you get your move to the one-hour high, okay? Another beautiful one again. Price takes out the one-hour high, one-hour low gets the beautiful move directly to it. So, we just keep going this way, ladies and gentlemen, and you will see the setup almost every single time that this setup actually plays out. It's genuinely insane, okay? Takes out the one-hour high, takes out the one-hour low. Wonderful. Comes and gets that move. Takes out the one-hour low. Takes a beautiful move to the 1-hour high. Cannot ask for more. Very important to focus here. Why does this CRT not work? Because remember, in order to have a valid CRT where you will take an entry, ladies and gentlemen, you need to make sure that the middle candle's low gets taken out. So, in this case, price never comes and takes out that low, so we do not play that. That is not a CRT that you'll end up trading, okay? But, anytime that price actually does end up getting the break of that middle candle's low, what happens, right? CRT right over here, breaks it beautifully, you get a move down to this 1-hour low. This setup, I'm just really showing you guys this part because I want you guys to see in real time. I don't want you guys to just be like, "Oh, Nitro said this setup works great." I want you guys to genuinely go back, test this setup on the, you know, charts yourself on MNQ, MES, MGC, literally anything you guys can find, and I want you guys to tell me, "Damn, like this setup is actually crushing it." Okay? Because it's one thing for me to tell you guys, it's one thing for you to see with your own eyes. All right? And like I said, I've been using this alongside the break of structure for rally gaps, guys, to absolutely crush prop firms. I've been on fire with it, and like I said, even though I'm prop firms are not my main thing, it's been a beautiful side income on top of what my main trading has really been. So, ladies and gentlemen, your homework after watching this video is to go back and see how many times on the 1-hour time frame do you see wonderful CRTs that get followed through? And on top of that, how many break of structure for rally gaps get followed through? So, with that being said, ladies and gentlemen, I really hope you guys enjoyed this video. If there are any questions at all, feel free to drop them in the comment section below. Or, if you guys have any more questions at all, feel free to join the Discord in my bio. I'm active in there 24/7 answering questions from all of you guys, so make sure to ask them anything you need in there. On top of that, we will also be hosting a free class covering all these concepts once again, so you guys should also join that in because it'll help you guys out a lot. So, like I said, go ahead and test this, guys. Do not just take my word for it. Go ahead and see with your own eyes, and tell me this is not the best setup that you guys have seen for futures specifically alongside my break of structure for rally gap. I've really been testing these for years. I do find these both being the most perfect ones you really can use, and I really hope you guys also test it out and see that that's exactly what I said. So, with that being said, ladies and gentlemen, I hope you guys enjoyed the video. Take care, and I will see you guys back in the next one.